Managing multinational operations Essay Example | Topics and Well Written Essays - 500 words

Managing multinational operations - Essay Example Acme’s first business assumption is that they will have subsidiaries in South America and Asia. Within this context of understanding, all the banks analyzed have South American and Asian locations, with HSBC have more diversified locations in these areas than either Bank of America or Citibank. Acme also has the specified need of local lending sources for operating cash. In these regards, HSBC presents the most local subsidiaries for access to lending cash. Acme’s next assumption is the need to centralize cash management. In these regards, all banks offer centralization opportunities. Acme has also specified the need for short-term investment vehicles for excess cash balances. All banks contain investment vehicles, but it’s clear that Citibank’s investment model is based for life-term retirement interests rather than short-term options. Conversely, both HSBC and Bank of America provide short-term and international investment options. While Bank of America has a self-directed investment program it’s clear that the impetus must come from the client to seek out international investments. HSBC is different than Bank of America in that it offers and promotes a number of short-term and multinational investment opportunities. In these regards, HSBC is the most effective short-term investment vehicle for Acme. In terms of access to foreign markets and forward market services, all banks offer a version of these needs. Still, it’s clear that Bank of America and HSBC offer the best options. In these regards, the decision is based on a qualitative assumption, as both banks offer equal access to foreign exchanges. All of the banks analyzed offer currency exchange options, which will allow the organization to pay bills in both local and other currencies. While both Bank of America and HBSC satisfy the future assumptions of Acme Corporation, it’s clear that HBSC would be the greatest option. The primary reason for